Deutsche Bank suggested strategic alternatives may be under review for SodaStream International Ltd. SODA in a report issued Tuesday.
The stock was hammered Tuesday after a 3Q revenue warning. Analysts Bill Schmitz Jr and Faiza Alwy noted that revenue is now “expected to be $125 million vs. our $151 million estimate and operating profit at $8.5 million vs. our $17.3 million estimate.”
Schmitz wrote that “management has stated they plan to recast the business as a health & wellness solution, supported with new and different advertising support.”
The report acknowledged that “while heading down this path seems interesting, consumers seeking health and wellness demand authenticity and street cred, something the company needs to be mindful of.”
Schmitz also believed that “the company may well be looking for a partner to take the business forward. But any potential acquirer would likely need greater clarity on the forward sales and earnings trajectory.”
SodaStream International Ltd. recently traded at $21.92, down 20.48 percent.
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